2016 Results Highlights

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2 2016 Highlights R$ million 4Q16 4Q15 4Q16 vs. 4Q15 Consolidated Net revenues amounted to R$26.7 billion, 9% lower than in 2015, mainly affected by the Brazilian operations. Adjusted EBITDA totaled R$4.3 billion, a reduction of 38% compared to Excluding the extraordinary dividends received from Fibria and the sale of land assets in 2015, this reduction would have been 27%. R$1.3 billion net loss in 2016, mainly due to the temporary suspension of the nickel operations and the classification of Brazilian long steel assets as available for sale, which resulted in an investment impairment of R$1.8 billion. The net debt/ebitda ratio came to 3.43x, 0.64x higher than in Q16 4Q16 vs. 3Q vs Net revenues 5,100 5,797-12% 7,347-31% 26,738 29,272-9% Adjusted EBITDA 639 2,135-70% 1,311-51% 4,285 6,963-38% EBITDA margin 12.5% 36.8% p.p. 17.8% -5.3 p.p. 16.0% 23.8% -7.8 p.p. Net income/loss (1,861) (198) 843% % (1,250) % Net debt/adjusted EBITDA 3.43 x 2.79 x 0.64 x 2.90 x 0.53 x 3.43 x 2.79 x 0.64 x CAPEX 899 1,321-32% % 3,031 3,212-6% Considers the Industrial Segment only Cement Net revenues of R$12.7 billion, 10% lower than in Adjusted EBITDA totaled R$2.4 billion. Operations abroad partially offset Brazilian economic recession impacts. Conclusion of the Primavera plant (Brazil) in May/2016 and the Yacuces plant (Bolivia) in December/2016. Zinc & by-products Increase of 3% in net revenues driven by higher metal prices in the London Metal Exchange ( LME ) and higher sales volume of zinc oxide and electrolytic zinc. EBITDA fell by 12% due to higher expenses associated with early-stage and greenfield mining projects and provisions for environmental obligations. Aluminum Net revenues fell by 9%, negatively impacted by the reduction in energy sales volume and lower demand for downstream products. Adjusted EBITDA totaled R$275 million, 66% down on 2015, reflecting higher primarily aluminum sales volume, which has a lower margin. Long steel Brazil The results from the Brazilian operations were classified as available for sale. Argentina Net revenues decreased mainly due to the devaluation of the Argentine peso against the BRL and lower sales volume. Colombia Net revenues and adjusted EBITDA went down mainly due to the 21% depreciation of the Colombian peso in the year in relation to the Brazilian real, which had a negative effect on the consolidated results. 2

3 1. OPERATING AND FINANCIAL PERFORMANCE Results analysis R$ million vs Net revenues 26,738 29,272-9% COGS (20,773) (21,967) -5% SG&A (3,765) (3,708) 2% Selling expenses (1,667) (1,625) 3% General & adm. expenses (2,098) (2,083) 1% Other operating results (2,605) (440) 492% Depreciation (2,664) (2,631) 1% Adjusted EBITDA 4,285 6,963-38% EBITDA margin 16.0% 23.8% -7.8 p.p. Considers the Industrial Segment only Net revenues totaled R$26.7 billion, 9% less compared to 2015, mainly due to Brazil s economic recession in 2016, which directly affected the cement and aluminum businesses. Revenues were also impacted by the temporary suspension of the nickel operations that was announced in January/16 and lower energy sales volume and prices in Brazil. Cost of Goods Sold (COGS) amounted to R$20.7 billion, 5% lower than 2015, due to a drop in cement sales volume in Brazil and the temporary suspension of nickel operations. Selling, General and Administrative Expenses (SG&A) remained stable. Higher expenses related to Votorantim Metais new corporate structure was offset by the reduction in personnel expenses in Cement and nickel operations in Brazil. Other operating results were impacted by the impairment of investments, which totaled R$2.2 billion in The temporary suspension of the nickel operations and the classification of Brazilian long steel assets as available for sale, resulted in an investment impairment of R$1.8 billion. Adjusted EBITDA totaled R$4.3 billion, 38% down on 2015, due to the reflection of the Brazilian economic scenario in Votorantim s operations, especially in the cement business. In 2015, the extraordinary dividends received from Fibria and the sale of land assets were added to EBITDA, excluding these events, the reduction would have been 27%. 3

4 Financial result 2016 vs R$ million R$ % Financial income from investments % Financial expenses from borrowings (1,723) (1,746) 23-1% Exchange variation 540 (564) 1,104 N.M. Net hedge result (1,006) 444 (1,450) N.M. Other financial income (expenses), net (304) (590) % Net financial result (1,759) (1,902) 143-8% Financial income totaled R$734 million in 2016, an increase of 32% compared with 2015 thanks to higher interest rates in Brazil: the average CDI interbank rate went up from 13.36% p.a. in 2015 to 14.06% p.a. in Financial expenses from borrowings remained stable due to the reduction in total debt, because of liability management initiatives implemented over the year, which were partially offset by the depreciation of Brazilian real (average) in the year and the mark-to-market result of the swap of 4131 loans. Other net financial expenses totaled R$304 million, 49% lower than in 2015, mainly due to the discount on the repurchase of Votorantim Cimentos bonds. The net hedge result totaled an expense of R$1,006 million in 2016, mainly due to the markto-market of the derivative instruments used to convert the 4131 loans from USD to BRL. Exchange variation gains were R$540 million, R$1,104 million higher than in 2015, due to the BRL appreciation in December 2016 (Dec/16: R$/US$3.26 Dec/15: R$/US$3.90). 4

5 Net Income 2016 Results R$ million Votorantim S.A. reported a net loss of R$1,250 million in 2016, mainly due to the temporary suspension of the nickel operations and the Brazilian long steel assets classification as available for sale, which resulted in an investment impairment of R$1,834 million. In 2016, the impairment of investments totaled R$2,159 million, an increase of R$1,507 million over The loss in 2016 was partially offset by the results of the companies recognized under the equity method, mainly by the increase in Fibria s annual net income, from R$357 million in 2015 to R$1,664 million in The increase of R$ 1,273 million in income tax and social contribution in relation to 2015 refers mainly to the recognition of tax credits due to the loss before income tax and social contribution. Liquidity and Indebtedness Indicator Unit Dec/16 (2) Dec/16 vs Dec/16 vs Dec/15 Sep/16 Dec/15 Sep/16 Gross debt R$ million 24,403 30, % 25, % in BRL (1) R$ million 8,765 11, % 9, % in foreign currency R$ million 15,638 19, % 15, % Average maturity years Short-term debt % 7.3% 8.6% -1.3p.p. 5.9% 1.4p.p. Cash, cash equivalents and investments R$ million 10,066 10, % 8, % in BRL R$ million 4,908 6, % 5, % in foreign currency R$ million 5,158 4, % 3, % Fair value of derivative instruments R$ million (375) (464) N.M. (413) N.M. Net debt R$ million 14,712 19, % 16, % Net debt/ebitda (3) (in BRL) x 3.43 x 2.79 x 0.64 x 2.91 x 0.52 x BRL/USD R$ % % (1) 4131 bilateral loan considered as BRL due to the cross-currency swap. (2) Considers the Industrial Segment only (3) EBITDA LTM 5

6 On December 31, 2016 gross debt amounted to R$24.4 billion, 20% down on December 2015, mainly due to the effect the appreciation of the Brazilian real against the U.S. dollar (from R$/US$3.90 in Dec/15 to R$/US$3.26 in Dec/16) and R$1.2 billion in amortization throughout the year. The chart below summarizes the main changes in gross debt figures: R$ billion The funding mix and the debt currency breakdown are presented below: 6

7 The chart below summarizes the debt amortization schedule: 2016 Results In January, 2017, liability management exercises were executed in order to extend debt maturities. The result of these initiatives was the extension of R$1.0 billion that would be due in 2017, 2018 and 2019, resulting in a smoother amortization schedule, as shown below: Cash, cash equivalents and financial equivalents closed 2016 at R$10.2 billion, 50% of which denominated in BRL. This cash position is sufficient to cover all obligations due in the next 4 years. 7

8 Cash is mainly invested in Brazilian government bonds and fixed-income products of Brazilian and foreign financial institutions. These investments are low risk, havehigh liquidity and are diversified in order to reduce concentration risk. The two revolving credit facilities, one of US$700 million, only the cement business, and another of US$500 million, for other Votorantim investees, both expiring in 2020, strengthen Votorantim s liquidity position, whichtotaled R$14.1 billion in These revolving credit facilities were not disbursed. Net debt totaled R$14.7 billion, 24% less compared to December Financial leverage, measured by the net debt to adjusted EBITDA ratio, came to 3.43x, an increase of 0.64x over December The chart below shows consolidated net debt and the net debt to adjusted EBITDA ratio since December 2015: Capex Capex totaled R$3.0 billion, 6% less compared to In 2016 expansion projects represented 51% of total investments, compared with 47% in The main projects were focused on cement operations, which accounted for 75% of total expansion investments. In 2016, two new plants were concluded, one in Brazil and one in Bolivia, and investments in Turkey and North America are in progress. 8

9 The zinc and by-products business continued investing in the project to extend the working life of the mine in Vazante (MG), as announced in This investment aims to add 10 years to the mine s life, ensuring the supply of zinc. Votorantim Energia's wind power generation project ( Ventos do Piauí ), an investment of R$1.1 billion, ended the year at 17% physical completion and more than 20% of financial execution. The start-up is expected for Free Cash Flow R$ million Adjusted EBITDA 4,285 6,963 Working capital / other 1, Income taxes (491) (634) Capex (3,031) (3,212) CFO 1,925 3,732 Investments/ Divestments 1, Financial, net (969) (1,302) Other Dividends (105) (386) FX effect on cash (1,117) 1,384 FCF 938 3,505 9

10 In 2016 Cash Flow from Operations (CFO) decreased R$1,807 million compared to 2015, mainly due to the weak operating performance throughout the year which was offset by lower Capex and a US$250 million inflow from the silver streaming transaction, executed by Milpo. Free Cash Flow (FCF) totaled R$938 million, a decrease of R$2,567 million compared to 2015, mostly due to the impact of the appreciation of the Brazilian real in December 2016 on the cash position denominated in foreign currencies. BUSINESSES R$ million Cement Zinc & byproducts Aluminum Long steel Others (1) Consolidated (2) Net revenues 12,697 6,386 4,490 1,569 1,596 26,738 COGS (9,578) (4,801) (4,155) (1,207) (1,032) (20,773) SG&A (2,017) (752) (337) (226) (433) (3,765) Other operating results 354 (586) (1,228) (153) (992) (2,605) Adjusted EBITDA 2,405 1, ,285 EBITDA margin 19% 21% 1% 19% N/A 16% (1 ) Includes Holding, Votorantim Energia, Baesa, Enercan, eliminations and other (2 ) Considers the Industrial Segment only 10

11 R$ million 2016 (1) 2016 vs Net revenues 12,697 14,053-10% COGS (9,578) (10,094) -5% SG&A (2,017) (2,046) -1% Selling expenses (1,091) (1,061) 3% General & adm. expenses (926) (985) -6% Other operating results % Depreciation (1,076) (988) 9% Adjusted EBITDA 2,405 3,225-25% EBITDA margin 18.9% 22.9% -4.0 p.p. (1) Considers the Industrial Segment only In Brazil, 2016 was marked by political and economic uncertainties, which impacted the performance of cement business for the second consecutive year. The Brazilian GDP drop 3.6% in 2016 after a 3.8% decrease in 2015 (according to the Brazilian Central Bank) leading to an economic recession in the country. Brazilian cement sales volume decreased by 11.7% over 2015, according to SNIC (the Brazilian cement association) as a consequence of domestic market demand retraction given the lower level of activity in the construction sector, higher unemployment rate and restricted credit access. In VCNA, solid economic growth combined with a milder winter in the Great Lakes favorably impacted construction activity. Construction spending increased 4.5% YoY, with private nonresidential construction spending increasing 7.8%, according to U.S. Census Bureau of the Department of Commerce. Stronger growth in the construction sector contributed to improved cement prices along the Great Lakes. Consumption in the key US markets increased 1.9% and 10.1% in the Great Lakes and Florida, respectively, as per USGS (U.S. Geological Survey). In VCEAA, a combination of factors impacted operations in 2016, such as the political deadlock in Spain which squeezed infrastructure investments; the military coup in Turkey and the consequent declaration of state of emergency; political and economic instability in Tunisia s neighborhood affecting exports and the demonetization of the Indian Rupee at the end of the year, impacting the country s economy. Nevertheless, VCEAA presented strong results supported by robust operating performance, especially in Morocco, given increased government investments in infrastructure and a stable market environment. Effective cost management measures in all regions and a successful business restructuring in China, also contributed to VCEAA's performance. 11

12 Consolidated net revenues totaled R$12,697 million, 9.6% lower than in 2015 mainly explained by lower volume and prices in BRL. In North America, VCNA revenues increased by 1.9% driven primarily by strong price increase in core US markets in both cement and ready mix concrete. In VCEAA, the 10.6% TRY (Turkish lira) depreciation against the EURO and lower sales volume in China were partially compensated by the increase in cement sales volumes in most countries where it operates, and higher prices in Morocco and Tunisia. Consolidated COGS amounted to R$9,578 million, a 5.1% reduction compared to 2015 as a result of the company s global initiatives focused on cost optimization and Zero-based budgeting implemented in This decline in COGS was due to lower fuel and power consumption and prices, a reduction of 12.8% in raw material and 5.7% in freight against 2015 mainly due to lower sales volume in Brazil and 9.3% lower maintenance costs explained by the rightsizing in Brazil and China also supported the COGS reduction. Selling, General & Administrative expenses totaled R$2,017 million in 2016, 1.4% lower than in This decrease was driven by G&A expenses reduction due to continuous savings from the global Zero-based budgeting savings, including the optimization of discretionary expenses, such as travel, third-party services, operational vehicles and marketing, among others, which fully mitigated Brazil s inflation impacts within the period. The focus on operational and cost efficiency guaranteed savings in global COGS and SG&A of R$574 million in 2016, totalizing R$917 million since Adjusted EBITDA amounted to R$2.405 million in 2016, 25.4% lower than in 2015, with an EBITDA margin of 18.9%. The Brazilian Market scenario was partially offset by cost reduction in all regions and positive results in VCNA and VCEAA. Excluding one-off impacts, VC s North American business recorded a 33% increase in EBITDA in USD compared to 2015 on a like for like basis, supported by favorable market and pricing conditions in its core US markets and the continued focus on cost reduction. VCEAA delivered an EBITDA increase of 5.6% in EUR and a 24% margin (3 p.p. increase over 2015) on the back of stronger operational performance in Morocco, increased volume and lower costs in Tunisia and China s EBITDA recovery. 12

13 US$ million vs Net revenues 1,844 1,796 3% COGS (1,381) (1,412) -2% SG&A (218) (190) 15% Selling expenses (91) (85) 7% General & adm. expenses (127) (106) 20% Other operating results (176) (63) 179% Depreciation (271) (293) -8% Adjusted EBITDA % EBITDA margin 21% 24% -3.4 p.p Results Concentrate production, measured in contained metal (fine content of zinc, copper and lead), totaled 519 kton in Zinc concentrate production was 2% lower than in 2015 due to lower grades of zinc in Atacocha mined ore, where the operation of San Gerardo allowed access to mineral with higher content of lead-silver, explaining most of the 10% increase of lead concentrate production in Copper concentrate production increased by 3% mostly due to higher production in the Cerro Lindo mine. Electrolytic zinc and zinc oxide sales volume increased by 3% in Despite the economic downturn in Brazil, zinc sales had a positive performance due to improved access to foreign markets. Brazilian flat steel producers have increased exports to overseas markets, with a positive impact on electrolytic zinc consumption, not only due to additional volumes but also due to export-quality flat steel specifications, which requires more zinc content. In line with the Company s strategy to develop a global footprint, zinc sales have increased in North America, Latin America, Europe and Asia. Net revenues totaled US$ 1,844 million in 2016, 3% higher than in Sales of zinc produced in smelters (electrolytic and oxide) and sales of lead concentrates outperformed in In addition, London Metal Exchange ( LME ) prices of both metals were higher when compared to the previous year. Nonetheless, lower prices of copper and smelting co-products limited part of the revenues gains. Cost of goods sold (COGS) was 2% lower in Lower usage of imported concentrates in smelting facilities and operational gains in mining and smelting operations contributed to reduce costs. The Juiz de Fora smelter consumption of imported concentrates was 11% lower than in 2015 due to higher usage of secondary raw materials. In the mining business segment, Cerro Lindo has increased its treatment capacity and Atacocha and El Porvenir mines are under an integration process, to become the Cerro Pasco complex. SG&A expenses increased by 15% in General and administrative expenses increased by 20%, mostly due to the impact of the corporate restructuring in the Votorantim Metais business unit, namely the transfer of some corporate employees to Votorantim Metais Zinco on June Selling expenses were impacted by higher sales volume. 13

14 Such combination of higher net revenues and lower cost of goods sold resulted in a 20% increase in the Company s gross profit. However, the operating results were negatively affected by (i) environmental provisions and (ii) early-stage projects expenses, resulting in an adjusted EBITDA of US$380 million in 2016, 12% lower than in 2015, and causing the EBITDA margin to decrease by 3.4 percentage points. Among such impacts, expenses relating to environmental obligations increased from US$12 million in 2015 to US$75 million in The amount of US$69 million was recognized as the result of a preliminary valuation of environmental obligations, according to specialized consultants that are updating the decommissioning plans of Brazilian units. Finally, expenses in early-stage and greenfield mining projects increased from US$29 million in 2015 to US$46 million in R$ million vs Aluminum Sales Volume (kton) % Net Revenue 4,158 4,566-9% Aluminum 3,034 3,125-3% Energy 1,124 1,441-22% COGS 3,666 3, % SG&A (277) (260) +7% Selling Expenses (99) (81) +22% General & Adm Expenses (178) (179) -1% Other Operating Results (1,186) (175) +578% Depreciation % Adjusted EBITDA % Aluminum % Energy % EBITDA Margin 6.6% 17.5% p.p. (1) (1) Considers nickel operations results from July/16 to Dec/16 Since July 1st 2016, nickel operations have been managed under CBA s corporate structure. In this report, nickel operational results impacted aluminum business expenses from July to December 2016, but nickel results from January/16 to June/16 were not included in the comparison tables. Aluminum sales volume totaled 331 thousands of tons, 5% higher than in However, the sales mix between primary aluminum and semimanufactured products (semis) was directly impacted by the adverse conditions in the Brazilian market: while primary sales increased by 14

15 14% (from 209 thousand tons in 2015 to 239 thousand tons in 2016), semis sales fell 14% (from 107 thousand tons to 92 thousand tons). The main market segments that demand semis products presented a negative performance in In the transportation sector, bus bodies production fell 18% compared to 2015, according to FABUS (National Association of Bus Manufacturers). There was also a 30% fall in the number of road implements, according to statistics from ANFIR (National Association of Trailer/Semi-Trailer Manufacturers). Construction activity also dropped by 5%, according to the IBGE (Brazilian Institute of Geography and Statistics). As a result, the company s net revenues totaled R$4,158 million in 2016, 9% lower than in the previous year, especially due to the decrease in energy revenues, given the sales volume reduction under a new pricing level. Regarding aluminum sales alone, net revenues declined 3% in 2016, impacted by the sales mix. Cost of goods sold (COGS) remained in line with 2015, totaling R$3,666 million. Lower energy costs offset higher costs of inputs for aluminum production. Sales, general and administrative expenses increased by 9% compared to the previous year, mainly due to the increase in provisions for doubtful accounts (R$20 million) in 2016, impacted by market conditions in Brazil. In 2016, CBA s adjusted EBITDA totaled R$275 million, a decrease of 66% compared to the previous year. In addition to the R$ 408 million reduction in net revenues and the increase in expenses mentioned above, the higher legal provisions related to nickel operations negatively impacted adjusted EBITDA by R$118 million. In the nickel business, the results were impacted by the temporary suspension of all nickeloperations. Net revenues totaled R$332 million, a decrease of 70% and EBITDA was negative by R$223 million, these results in the nickel segment refers only to the period from January to June

16 R$ million 2016 (1) 2016 vs Net revenues 1,569 1,969-20% COGS (1,207) (1,448) -17% SG&A (226) (294) -23% Selling expenses (111) (150) -26% General & adm. expenses (115) (144) -20% Other operating results (153) % Depreciation (146) (131) 11% Adjusted EBITDA % EBITDA margin 19.4% 19.6% -0.2 p.p. (1) Considers the Industrial Segment only 2016 Results According to the World Steel Association, worldwide installed capacity utilization stood at 69.3% in 2016, compared to 69.7% in 2015, and the global idle installed capacity of around 800 million tons remains a concern in the sector. Regarding idle capacity, in February 2017 VSA and ArcellorMittal Brasil entered into an agreement to capture synergies from the combination of the long steel business of the two companies in Brazil. Brazilian long steel results were not included in 2016 financial statements since these assets were classified as available for sale. Long steel operations in Argentina and Colombia were not included in the transaction and remained focused on cost reduction and operational stability. In Argentina the government s revision of public infrastructure projects in 2016, the higher long steel inventory held by the main customers and the adjustment measures taken by the new government affected the demand throughout the year. In Colombia, the 45-day truck drivers strike that began in June 2016 restricted the products sales. Net revenues in these two countries totaled R$1.6 billion in 2016, 20% less than 2015, due to lower sales volume as a consequence of the economic scenario in Argentina, in Colombia sales prices remained stable in local currency, but the 21% depreciation of the Colombian peso in the year in relation to the Brazilian real had a negative effect on the consolidated results. COGS totaled R$1.2 billion, 17% lower than 2015, mainly due to the devaluation of the Argentine peso against the Brazilian real and the reduction in prices of metallic inputs in Argentina. This decrease was partially offset by higher depreciation expenses after the review of the useful life of some assets and the increase in the price of met coal in Colombia. SG&A totaled R$226 million, 23% lower than 2015, because of the devaluation of the Argentine peso against the Brazilian real and lower expenses with third party services, partially offset by higher personnel expenses, reflection of the inflation in Argentina. Adjusted EBITDA totaled R$304 million, 21% down on 2015, and the EBITDA margin stood at 19.4%. 16

17 BUSINESSES RECOGNIZED UNDER THE EQUITY METHOD 2016 Results R$ million Net income/loss without results from investees (2,037) 83 Fibria Citrosuco (117) - Banco Votorantim Others Net loss (1,250) 382 In 2016, the businesses that were recognized under the equity method, primarily Fibria and Votorantim Finanças, which owns 50% of Banco Votorantim, contributed to partially offset the VSA s loss. Fibria's net revenues totaled R$9.6 billion in 2016 and adjusted EBITDA was R$3.7 billion, 5% and 30% less than in 2015 respectively. In 2016, Fibria continued to invest in the Horizonte 2 project, which reached 77% of physical completion and 57% of financial execution. Citrosuco s results from the harvest were impacted by adverse weather conditions, which affected both the quantity and the quality of the fruits produced in Brazil. In light of this scenario, Citrosuco revised its commercial strategy, reflecting a drop of 21% in FCOJ's sales volume. Adjusted EBITDA decreased 31% compared to the harvest, totaling US$117 million. Banco Votorantim reported a net income of R$426 million in 2016, compared to R$482 million in The balance of the expanded credit portfolio closed the year at R$60.9 billion, falling 7.1% in the last 12 months reflecting the focus on profitability and assets quality. At the end of 2016, shareholders' equity totaled R$8.4 billion, an increase of 10.6% compared to The Basel Ratio ended the year at 15.1%, higher than the minimum capital requirement. 2. ADDITIONAL REMARKS (i) Brazilian long steel operation On February 22, 2017, VSA entered into an agreement with ArcelorMittal Brasil (AMB) and its shareholders, whereby Votorantim Siderurgia S.A. will become a subsidiary of AMB ( Transaction ). The Transaction comprises VSBR s operations in Brazil and does not include Acerías Paz del Río, in Colombia, and Acerbrag, in Argentina, which will continue to integrate the long steel business in VSA s portfolio. 17

18 3. INVESTOR RELATIONS CONTACTS Votorantim S.A. Votorantim Cimentos Votorantim Metais Fibria Banco Votorantim 18

19 EXHIBIT I VOTORANTIM S.A. CONSOLIDATED INCOME STATEMENT Consolidated Income Statement R$ million Continuing operations Net revenue from products sold and services rendered 26,738 29,272 Cost of products sold and services rendered (20,773) (21,967) Gross profit 5,965 7,305 Operating expenses Selling (1,667) (1,625) General and administrative (2,112) (2,083) Other operating expenses, net (2,605) (440) (6,384) (4,148) Operating profit (loss) before equity results and finance results (419) 3,157 Result from equity investments Equity in the results of investees Realization of other comprehensive income on disposal of investments Finance results, net Finance income 1,397 1,071 Finance costs (2,666) (2,853) Derivative financial instruments (1,006) 444 Foreign exchange losses, net 544 (564) (1,731) (1,902) Profit (loss) before income tax and social contribution (1,369) 1,554 Income tax and social contribution Current (481) (714) Deferred 868 (164) Profit (loss) for the year from continuing operations (982) 676 Discontinued operations Loss for the year from discontinued operations (268) (294) Profit (loss) for the year (1,250) 382 Profit (loss) attributable to the owners of the Company (1,295) 387 Profit (loss) attributable to non-controlling interests 45 (5) Profit (loss) for the year (1,250)

20 EXHIBIT II VOTORANTIM S.A. CONSOLIDATED CASH FLOW Consolidated Cash Flow R$ million Cash flow from operating activities Profit (loss) before income tax and social contribution (1,369) 1,554 Loss for the year from discontinued operations (268) (294) Adjustments of items that do not represent changes in cash and cash equivalents Depreciation, amortization and depletion 2,788 2,754 Equity in the results of investees (737) (299) Realization of other comprehensive income on disposal of investments (44) Interest, indexation and foreign exchange variations 962 2,567 Provision for impairment of fixed, intangible assets and investments 2, Gain on sale of fixed and intangible assets, net (149) (345) Gain on sale of investments, net (312) (265) Allowance for doubtful accounts 4 Fair value adjustment - Resolution 4131 (26) Discount on repurchase of bonds (173) Provision Derivative financial instruments 791 (386) Financial instruments - firm commitment Change in fair value of biological assets (10) 44 4,244 6,457 Decrease (increase) in assets Financial investments 1, Derivative financial instruments (72) 57 Trade accounts receivable 522 (320) Inventory 322 (435) Taxes recoverable 171 (81) Related parties 320 (28) Other accounts receivable and other assets (111) (33) Increase (decrease) in liabilities Trade payables (300) 854 Salaries and social charges (20) 127 Use of public assets Taxes payable (102) (71) Other liabilities 304 (29) Cash provided by operations 7,137 7,146 Interest paid on borrowing and use of public assets (1,779) (1,876) Premium paid on the Tender Offer (136) Income tax and social contribution paid (491) (634) Net cash provided by operating activities 4,867 4,500 Cash flow from investment activities Proceeds from disposals of fixed and intangible assets Proceeds from sale of investments - Sirama Proceeds from sales of other investments Dividends received Capital decrease in investees (22) Acquisitions of property, plant and equipment (3,026) (3,199) Increase in biological assets (5) (13) Capital increase in investees 57 Increase in intangible assets (181) (105) Net cash used in investment activities (1,940) (1,811) Cash flow from financing activities New borrowing 6,162 7,191 Repayment of borrowing (7,376) (7,576) Related parties Derivative financial instruments (371) 151 Capital increase 120 Acquisition of non-controlling interests - VCNNE Increase in non-controlling interests - Itacamba 53 Increase in non-controlling interests - Yacuces 55 Fair value of interest increase - Milpo (466) Interest on debentures - VFIN (106) Dividends paid (105) (386) Net cash used in financing activities (1,690) (964) Increase in cash and cash equivalents 1,237 1,725 Cash increase resulting from incorporation 177 Effect of fluctuations in exchange rates (1,117) 1,384 Cash and cash equivalents at the beginning of the year 6,649 3,540 Cash and cash equivalents at the end of the year 6,946 6,649 20

21 EXHIBIT III VOTORANTIM S.A. CONSOLIDATED BALANCE SHEET Consolidated Balance Sheet R$ million R$ million Assets Consolidated Balance Sheet Liabilities and equity Current assets Current liabilities Cash and cash equivalents 6,946 6,649 Borrowing 1,772 2,616 Financial investments 3,190 3,936 Derivative financial instruments Derivative financial instruments Confirming payables 968 1,083 Trade receivables 2,001 2,745 Trade payables 2,726 3,179 Inventory 3,381 3,888 Salaries and payroll charges Taxes recoverable 1,527 1,376 Taxes payable Dividends receivable Advances from clients Financial instruments - firm commitment Dividends payable Other assets Use of public assets ,258 20,486 Financial instruments - firm commitment 2 Deferred revenue - performance obligation Other liabilities ,465 10,198 Assets classified as held-for-sale 2, Liabilities related to assets as held-for-sale 1,522 20,383 20,900 9,987 10,198 Non-current assets Non-current liabilities Long-term receivables Borrowing 22,631 27,915 Financial investments Derivative financial instruments Derivative financial instruments 232 1,361 Deferred income tax and social contribution 1,983 2,061 Taxes recoverable 1,586 1,315 Related parties 22 1,216 Related parties 535 3,188 Provision 2,346 2,189 Deferred income tax and social contribution 4,055 4,065 Use of public assets 1,119 1,064 Judicial deposits Pension plan Financial instruments - firm commitment Financial instruments - firm commitment Other assets Deferred revenue - performance obligation ,096 10,893 Other liabilities 1, ,788 36,703 Investments 12,949 5,174 Biological assets Total liabilities 40,775 46,901 Property, plant and equipment 25,091 29,281 Intangible assets 13,013 16,570 Equity 59,215 61,999 Share capital 28,656 21,419 Revenue reserves 6,254 7,436 Retained earnings Carrying value adjustments 1,255 2,967 Total equity attributable to owners of the Company 36,165 31,822 Non-controlling interests 2,658 4,176 Total equity 38,823 35,998 Total assets 79,598 82,899 Total liabilities and equity 79,598 82,899 21

22 EXHIBIT IV VOTORANTIM S.A. CONSOLIDATED INCOME STATEMENT (BY BUSINESS UNIT) 2016 Results 2016 Consolidated Income Statement (by Business Units) Cement Zinc and byproducts ("VMH") Aluminum ("CBA") Steel (**) Nickel (*) Holding and other Total, industrial segments Total, consolidated R$ million Net revenue from products sold and services rendered 12,697 6,386 4,158 1, ,596 26,738 26,738 Cost of products sold and services rendered (9,578) (4,801) (3,666) (1,207) (489) (1,032) (20,773) (20,773) Gross profit (loss) 3,119 1, (157) 564 5,965 5,965 Operating income (expenses) Selling (1,091) (315) (99) (111) (5) (46) (1,667) (1,667) General and administrative (926) (437) (178) (115) (55) (387) (2,098) (2,112) Other operating income (expenses), net 354 (586) (1,186) (153) (42) (992) (2,605) (2,605) (1,663) (1,338) (1,463) (379) (102) (1,425) (6,370) (6,384) Operating profit (loss) before equity results and finance results 1, (971) (17) (259) (861) (405) (419) Result from equity investments Equity in the results of investees 134 (1) Realization of other comprehensive invome on disposal of investments (1) Finance results, net Finance income ,367 1,397 Finance costs (1,675) (201) (442) (87) (37) (222) (2,664) (2,666) Derivative financial instruments (770) (13) (2) (5) (216) (1,006) (1,006) Foreign exchange gains (losses), net (10) 270 (1,242) (1,012) (74) 256 (1,428) (1,759) (1,731) Profit (loss) before income tax and social contribution (644) (91) 7 (1,858) (1,377) (1,369) Income tax and social contribution Current (83) (238) (26) (74) (57) (478) (481) Deferred (119) (99) 444 (51) Profit (loss) for the year from continuing operations (226) (216) 7 (1,217) (982) (982) Discontinued operations Profit (loss) for the year from discontinued operations 4 (272) (268) (268) Profit (loss) for the year (226) (216) 7 (1,489) (1,250) (1,250) Profit (loss) attributable to the owners of the Company (226) (160) 7 (1,504) (1,295) (1,295) Profit (loss) attributable to non-controlling interests (56) Profit (loss) for the year (226) (216) 7 (1,489) (1,250) (1,250) (*) Corresponds to the period between January 1 and June 30, 2016, as VMSA was merged into CBA on July 1, (**) Relates to long steel operations abroad (Argentina and Colombia). 22